Sweden’s Energy Policy – Could the USA Find Inspiration Here?

The USA could learn a number of valuable lessons from Sweden about energy policy. The Swedish Trade delegation recently sponsored a Smart Grid roundtable in San Francisco with Anna-Karin Hatt, Minister for Information Technology and Energy in the government of Sweden’s Ministry of Enterprise, Energy and Communications. Several Silicon Valley Smart Grid organizations, including resources from Oracle, Silver Springs Networks, EPRI, and the Smart Grid Library participated with moderation by Lars Friberg, the Swedish attaché for Climate and Energy.

Ms. Hatt set the knowledge foundation for the roundtable by describing Sweden’s energy policy targets for 2020:

Achieve 50% renewables. This is the highest target in the European Union, and they are on track to achieve it as they were at 48.9% in 2010.

Reduce emissions 40% from 1990 levels, and by 2030, eliminate fossil fuels from their vehicle fleets.

By 2050, the country aims to be carbon neutral. These are serious energy policy goals that starkly contrast to the conflicted USA energy policy. The Swedish government understands that 80% of the world’s current energy consumption is fossil fuels, and that’s a significant problem for energy security, environmental balance, and economic competitiveness. The leadership concluded that they don’t need to remain part of the problem. With the support of their citizens, Sweden intends to become part of the solution – which is to achieve independence from fossil fuels. Sweden plans to be in the forefront of the energy market evolution – and indeed they already have been.

There are three cornerstones for their policy objectives that cover economic competitiveness, economic sustainability, and security of energy supplies. To do that will require increasing renewables at utility-scale and through distributed generation with renewables in the distribution grid. The Minister acknowledged that renewables create a challenge for grid operations insofar as their variabilities need to be managed, but that isn’t impeding their planning. They are careful to structure policy goals and conditions for actions, but not dictate how the transitions to more renewables should occur. As Ms. Hatt noted, “we’re only at the beginning of a truly transformative period world wide, in which there will be enormous investments in energy efficiency and renewables technologies and services.”

The government in Sweden recently established a Smart Grid Council and charged its appointees with establishing a national knowledge platform for its citizens that would raise awareness of Smart Grid benefits for all stakeholders and create an action plan that identified evolving business models and research gaps. The minister indicated that there is much to learn about consumer reactions to electricity price variations and detailed consumption data.

Sweden is making significant advances to modernize their electrical grid and integrate clean energy sources into it and transportation infrastructures. So why did this forward-thinking government ministry convene with Silicon Valley Smart Grid players? To collaborate on technology development, business and financial model innovations, and consumer/prosumer transformations. This roundtable was just the first step to exchange ideas and information, such as the Property Assessed Clean Energy (PACE) programs and other creative approaches to finance renewables in the distribution grid for residential and commercial customers. One key takeaway for us American participants – we shouldn’t limit our thinking in terms of the ambitious goals we could and should set for an energy policy that promotes energy independence from fossil fuels, and therefore delivers energy, economic, and environmental security.

The Swedish Trade delegation is planning a seminar in the San Francisco Bay Area in the first half of 2013 to continue this discussion, so stay tuned for more information and inspiration.

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